- Natural gas company Valeura Energy (TSX:VLE) has begun to feel the impact of COVID-19 on its operations, as seen in its first quarterly report of 2020
- First quarter net petroleum and natural gas sales amounted to 716 barrels of oil-equivalent per day, less than the 768 barrels per day that the company reported in 2019’s same quarter
- The company stated that sales to its light industrial customers dropped towards the end of the quarter, due to the onset of the COVID-19 pandemic
- Valeura partially offset these losses by curtailing third-party gas throughput and instead focusing on its own gas production
- Valeura Energy (VLE) is up 2.86 per cent, with shares trading for C$0.36 and a market cap of $31.2 million
Natural gas company Valeura Energy (TSX:VLE) has begun to feel the impact of COVID-19 on its operations, as seen in its first quarterly report of 2020.
First quarter net petroleum and natural gas sales amounted to 716 barrels of oil-equivalent per day, which is 11 per cent higher than in the previous quarter. However, this is less than the 768 barrels per day, the company reported in 2019’s same quarter.
The company stated that sales to its light industrial customers dropped towards the end of the quarter, due to the onset of the COVID-19 pandemic.
Valeura partially offset these losses by curtailing third-party gas throughput and instead focusing on its own gas production.
As a result, production revenue was approximately C$3.92 million, which is 3.8 per cent less than in 2019’s corresponding period.
Valeura operates in Turkey’s Thrace Basin and has managed to maintain production, despite the impact of the pandemic on the region.
However, late in the quarter new safety measures forced the company to suspend its workover operations and non-critical field work until further notice.
Sean Guest, President and CEO of Valeura, is happy with the company’s first quarter and believes the company is well positioned to weather the recent industry volatility.
“Our Q1 2020 results are an example of how even in the face of substantial new challenges due to the COVID-19 pandemic, we can maintain our health and safety record while continuing critical operations to maintain the supply of gas to our customers.
“By having direct control of the value chain all the way from the wellhead to the customer, coupled with pricing that has not been influenced by the recent sharp decline in crude oil prices, our shallow gas business is fundamentally well-positioned to remain resilient in these times,” he said.
Sean went on to say that the company is continuing to monitor the developing situation in Turkey and remains in a strong financial position.
Valeura Energy (VLE) is up 2.86 per cent, with shares trading for $0.36 at 11:41am EDT.
